Born February 23, 1840 in Neu-Sandec, Galicia, Austrian Empire (now Nowy Sącz, Poland),Carl Mengerwas an Austrian economist who contributed to the development of the theory of marginal utility and to the formulation of a subjective theory of value.
Mengerreceived a Ph.D. from the Jagiellonian University in Krakow in 1867 and then accepted a post in the Austrian civil service. In 1873 he became professor of political economy at the University of Vienna, staying there, with brief breaks, until 1903. Then he devoted himself to his studies in economics. Menger is widely known as the founder of the Austrian School of Economics.
Mengerhe also used the subjective theory of value to refute the Aristotelian view that exchange involves a transaction of equal value for equal value. In return, he notedMenger, people will give up what they value least in exchange for what they value most, which is why both parties can gain from a trade. That led him to the conclusion that intermediaries create value by facilitating exchange. He also showed that money, as a transactional medium, solves the difficulty of exchanging goods directly: a chicken farmer who wants gasoline finds it easier to exchange those chickens for a widely accepted good, money, and then exchange this good for gasoline. It is much more difficult to exchange chickens directly for gasoline. Money, like language, developed naturally as a means of facilitating human interaction.